With today's plunge, Latin American currencies have collapsed by over 5% in th elast 2 weeks - the fastest drop in almost two years. Year-over-year this is a 15.75% drop, the largest such drop since Lehman. This drop breaks the 2009 lows and presses the currencies to their weakest since 2003... Bond markets are being crushed as short-dated Argentine BONARs have collapsed to 14 month lows.

Since the Fed has been implicitly printing to cover the deficit for the last 6 years, it can be said with some certainty that Lew has nothing to fear from Congress or Holder, at least until next January assuming Democrats lose the Senate in November.

I can just hear those fucks in the WH going......."wait for it, not yet.......not yet, wait for it.......no one gets help this time until real blood is pouring from Wall Street.......nobody lift a fucking finger yet.....wait for it"

Because if you think Ol Bammer hasn't learned a thing or two about "running and controlling the world", your crazy!! In his mind he bailed out those ungrateful WS fucks last time and made them whole on their risk and gave them new bonuses to the moon and the motherfuckers "betrayed him" and "backed Romney" and the whole bit, so this time, motherfuckers will be on their knees when they come begging and they will have pens in their hands, ready to sign over the whole show to him!!!!

Then maybe Grandma Yellen will fire up the presses, but not a fucking minute sooner!!

All in all, Brazil's just another (and the smallest) BRIC in the Wall.

Wait until the full ugliness of the actual reality of China & India's economic misfortunes reveal themselves (because the Financial "Media" would never think to get ahead of that story; that might spook people in time for them to do something logical such as GTFO).

Simon Black, aka Sovereign Man, is wasting away in Margaritaville. He's looking for his lost shaker of salt.

WTF would happen in such an environment to a Spanish Peseta, a Portuguese Escudo, an Italian Lira, a Greek Drachma, a French Franc? How would that be better? Inversely, where would the German, Dutch, Finnish, etc. currencies shoot up? How would that be better?

I feel vindicated in thinking for some decades that the EUR is a good idea, in such an expected, recurring environment. And the CHF is of the same opinion, otherwise it would not be hiding under the skirts of the EUR, like others

those are all just ripping tides from the mighty FED, the sun of the currency's planetary system

It would allow export-intense & dependent nations the OPTION (aka freedom) to try & stimulate their exports, if they so desired, via relative currency devaluation.

It would allow other nations not so heavily export dependent, and more desirous of stimulating domestic consumption, to tinker with currency valuation, interest rates, etc., as a means of encouraging either increased savings investment, or consumption.

In either case, much more of a nuanced approach could be undertaken, in a sovereign manner, in a way that is far closer to what natural levels of aggregate demand would dictate, which have the immensely beneficial impact of bringing about more normative/rational pricing of goods and services consistent with true aggregate demand, rather than idiotic "target rates" that will never be achieved and will only serve to further distort the economy's structure and encourage massive misallocation of investment, resources and encourage gambling/speculation based on monetary policies as set by incompetent central control & command "banks."

I can tolerate a little sternum/ribness if the mammaries hang nicely, in fact I think a little bone lends a certain authenticity to the rack. BTW those are virgin nips right there i.e. this is not a mother. THat means her abs still working and her cooter is still tight.

This is not the same Latin America it was in 1998 or even 2007. The issues may be the same but they have learned a lot in their struggles with the international banks and lending agencies, they have learned a lot in the course of long bitter and sometimes bloody struggles with dictatorships set up to impose the will of the internationa banks and corporations. The growing need for China, Russia, Iran and Brazil among other countires to break out of the dollar straight-jacket alters the international financial environment. And we can bet there are people in each of those countries reading and seeing the same things we are about the unique international financial moment the world finds itself in.

I'm not going to try to predict what they'll do. I do feel confident that it will be something different, perhaps quite unexpected, and that investors who cynically assume they know what's coming next because they've seen it all before - or because their theories tell them what will happen - will get hurt.

Best advice: Put yourself in their shoes, sey aside all judgments about how could they have put themselves in this position again. Look into what they are writing. Think seriously what you would do.

Do not discount the armed forces and their internal support against a very much corrupt political elite. A monetary shock (yet another!) may indeed force "something different" but not unusual for the region.